Just discovered that a large portion of your workforce is overpaid or underpaid? Not sure what to do? Join us for a walkthrough on how to discover and manage over/underpayment. This webinar covers: - What to do with a new minimum wage - Payment relative to market - Employees who are paid out of range - Communicating pay adjustments - To freeze or not to freeze pay?

1. Comp
Founda+ons:
So
you’re
paying,
now
what?
Over
Under

2. www.payscale.com
Introduc+on
Jenni
Marquez,
CCP
Sr.
Compensa+on
Professional
Camie
Bailey
Customer
Training
Specialist

3. www.payscale.com
54
Million
Salary
Profiles
10
Org
types
350
Industries
15,000
Job
Titles
2,300
skills,
4,200
cer+fica+ons
The
World’s
Largest
Salary
Database

5. www.payscale.com
The
Basics

6. www.payscale.com
Start
by
understanding
your
compensa+on
context
Legal
Market
Org

7. www.payscale.com
Legal
Context
Federal,
State,
and
Local
laws
Minimum
Wage
Fair
Labor
Standards
Act
Pay
Equity
Laws
Other
laws

8. www.payscale.com
Market
Context

9. www.payscale.com
Org
Context

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The
Science

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Examine
your
pay
• Iden+fy
Market
Value
for
Jobs
• Build
Ranges
• Evaluate
Range
Outliers

12. www.payscale.com
Iden+fy
Market
Value
for
Jobs
• Where
do
you
compete
for
talent?

13. www.payscale.com
• What
are
the
unique
compensable
factors?
Iden+fy
Market
Value
for
Jobs

14. www.payscale.com
Match
Jobs,
not
People

15. www.payscale.com
Tips
&
Best
Prac+ces:
• When
searching;
less
is
more!
• A
“good
match”
is
when
70%
or
greater
of
the
task
list
aligns
with
the
job
in
ques+on
• You
cannot
edit
job
tasks
• Consider
flipping
your
search
around
-­‐
Example:
Director
of
Sales
vs.
Sales
Director
Job
Matching
Webinar
Iden+fy
Market
Value
for
Jobs

16. www.payscale.com
Set
Your
Target
Percen+le

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Set
Ranges
for
Your
Jobs

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Select
All
Market
Reports
in
Live
or
Scenario

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Click
in
a
row
to
bring
up
the
menu
and
choose
Set
Ranges
to
Market

20. www.payscale.com
Use
Annualized
Min-­‐Mid-­‐
Max
to
Market
View
Job-­‐Based
Market
Range
Market
Value
at
Target
Difference
between
range
midpoint
and
market
at
target
Job-­‐Based
Market
Ranges

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Evaluate
Range
Outliers

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Range
Outliers
at
a
Glance

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min
max
mid
Individual
Range
Outliers
Be
an
Analy+cs
Hero
Webinar

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The
Art

25. www.payscale.com
It’s
+me
to
make
some
recommenda+ons

26. 26
Are
they
really
over/under
paid?

27. 27
Examine
employee
pay
in
the
context
of…
• Organiza+onal
goals
• Policies
• Compliance
• Individual
results
and
accomplishments

28. www.payscale.com
Op+ons
for
addressing
underpayment

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Increase
all
to
boiom
of
range

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Bring
employees
into
range
over
+me
• 28
employees
in
the
green
• $143k
total,
0.53%
of
the
total
budget
• Decide
on
a
plan:
e.g.,
spend
.25%
now
and
.25%
in
6
months
• Priori+ze

31. www.payscale.com
Priori+ze
by
those
furthest
from
range

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Priori+ze
by
performance

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Priori+ze
by
business
objec+ves

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Op+ons
for
addressing
overpayment

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Freeze
base
pay
• 95
employees
in
the
red
• $572k
total,
which
is
2.10%
of
the
total
budget

36. www.payscale.com
Offer
performance-­‐based
lump
sum
payout

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*New
-­‐
PayScale
Crew
makes
the
increase
process
easy
hip://payscale.hubs.vidyard.com/watch/FxUjY3g48VphMet4kYoXYL

38. www.payscale.com
Allocate
smaller
increases
• Using
a
merit
matrix,
those
high
in
range
already
receive
a
smaller
increase
• Consider
making
“above”
increases
even
smaller

39. www.payscale.com
Reduce
pay*
• *Not
usually
recommended
–
check
w/
employment
lawyer
• If
you
have
significant
overpayment,
consider
reducing
pay
• This
some+mes
happens
in
organiza+ons
with
highly
tenure
• 64/476
employees
account
for
$248k
or
43%
of
pay
in
the
red

40. High
pay
doesn’t
necessarily
mean
overpayment
Low
pay
doesn’t
necessarily
mean
underpayment

41. A
new,
average
performer
may
be
“overpaid”
here
MINIMUM
$50,300 $62,40
0
MIDPOINT MAXIMUM
$74,40
0
Job
Pay
Range

42. A
stellar
performer,
with
high
levels
of
experience,
skills,
and
demonstrated
results
would
be
“underpaid”
here
MINIMUM
$50,300 $62,40
0
MIDPOINT MAXIMUM
$74,40
0
Job
Pay
Range

43. With
certain
comp
policies,
employees
within
their
first
90
days
in
entry
level
roles
may
be
appropriately
paid
here
MINIMUM
$50,300 $62,40
0
MIDPOINT MAXIMUM
$74,40
0
Job
Pay
Range

44. www.payscale.com
The
Execu+on

45. 45
Communicate
changes
well

46. of
companies
are
confident
in
managers’
ability
to
have
tough
pay
conversa+ons
2016 PayScale Compensation Best Practices Report
17%

47. Train
Execu+ves
and
Managers
• Purpose
of
comp
plan
• Ra+onale
for
pay
changes
• Communica+ng
changes

48. www.payscale.com
Q
&
A
(we’ll
email
this
out)